Samsung Earnings Soar as Demand for Bitcoin Mining Chips Increase
Samsung, the giant South Korean company of the electronics industry, had a profit surge in the first quarter of 2018 because of crypocurrency mining. The company believes that it is selling considerably more mining chips because of this and that the trend will continue into the second quarter.
The company is a world leader in the production of semiconductor tech, which makes it one of the more popular choices for crypto mining. During the first quarter of 2018, the company earned 60.65 trillion won (about 56 billion USD).
Compared to 2017, this was an increase of 58% in sales. The Seoul Newspaper media outlet has reported that semiconductors are accounted for about 73% of the total profits of the company in the quarter
Semiconductors made by Samsung can be used to create ASIC Miners, which are a common type of mining machines for Bitcoin. The company perceived this trend and started to produce semiconductors that could be used for this purpose this year. This explains the surge in the profits.
The beginning of the year is generally considered a quarter in which the company sells fewer products because the seasonal demand for mobile parts is generally lower, but Samsung was able to make this record number due to the increasing sales of these products.
The Market For Mining Chips
When we consider the market for ASIC mining, there is not a big concurrence for Samsung. The largest of its competitors is surely Taiwan’s TMSC, which is the supplier of companies like Bitmain and Canaan. TMSC is also hitting record sales for the exact same reason as Samsung. Although not all ASIC mining chips are embraced as many coin communities want to develop ASIC-resistant blockchain mining protocols to ‘avoid centralization'.
There are three main companies that are competitors from Samsung in this business. TMSC, as stated, is the largest, according to a report made by Trendforce. It has a stunning 55.9% market share by revenue and will hardly be surpassed by any of the other companies including Samsung.
The other ones are Global Foundries with 9.4% and UMC with 8.4%. Samsung currency has 7.7% of the market share, which means that it has chances to surpass these two companies but it is almost impossible to take away TMSC’s place.